Optus has been ordered to pay a record $100 million penalty after the Federal Court found the telco engaged in unconscionable conduct by selling mobile phones and contracts to vulnerable Australians who could not use or afford them.

The case, brought by the ACCC, revealed that between 2019 and 2023, Optus staff across 16 stores pressured more than 400 customers – many living with disabilities, limited English, financial hardship or in remote First Nations communities – into signing up for expensive phones, plans and accessories.

Some customers were misled into believing products were free, while others were pursued by debt collectors for thousands of dollars.

The decision follows Optus’ June admission that it would accept the penalty subject to court approval. The ruling now confirms the fine and locks in a five-year court-enforceable undertaking with the ACCC.

The ruling also comes after Optus confirmed it had sacked staff involved in the misconduct.

Justice O’Sullivan described the impact of Optus’s actions as “profound”, citing severe financial harm, emotional distress and the risk of losing essential telecommunications services.

ACCC Deputy Chair Catriona Lowe said the scale of the misconduct was “truly appalling”.


“A company of Optus’s size should have had better systems and controls in place to identify and stop this sort of behaviour,” Lowe said.

The misconduct included falsified contracts at the now-closed Mount Isa store, where staff used stolen identities of First Nations customers.

Despite being aware of fraudulent activity, Optus management continued to pursue debts through external agencies, leaving some consumers threatened with legal action as late as mid-2024.

Under a five-year, court-enforceable undertaking, Optus will compensate affected customers, overhaul sales practices, and fund a $1 million digital literacy program for First Nations Australians.

Optus will also move to directly operate certain regional stores and phase out commission-based selling, which regulators said encouraged exploitative behaviour.

The case mirrors earlier action against Telstra, which was fined $50 million in 2021 for similar conduct targeting First Nations customers.